Tag Archives: money

The Snowball Effect

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                                                                Photo: Yay Images

When I moved back to the US in 2016, I had to work really hard to rebuild my credit. Shortly before I left in 2010, I was a victim of identity theft. It’s practically impossible, trying to get the IRS to respond to requests when you live abroad. A good credit profile includes a combination of different types of credit (installment, revolving, etc). It’s so damn easy to get into debt. Getting out is another matter. I used the snowball effect to pay off high balances, which meant I had a better-looking credit profile.

If you have not heard of the snowball method, this blog post is an excellent summary. Debt can pile up quickly, becoming overwhelming before you know what to do with it. Fortunately, there are strategies you can employ to pay down your debts, without going broke or insane in the process.

The snowball effect is an easy and convenient method of paying down debts, regardless of how much debt you have. Can you imagine what it would be like to live without debt? Your money would be yours, to do with as you please, instead of feeding the wallets of the rich. You’ll look forward to enjoying guilt-free vacations – paid for with cash – and buying your next car with cash, instead of credit. Picture the life you deserve in your mind and feel the feelings of relief. Next, make a plan to move toward this life, and put your plan into action.

Follow these tips to use the snowball effect for paying off your debts:

  1. Pay off your smallest debts first. When you pay the smallest debt off first, you start a small amount of momentum that’ll build quickly. Write down all of your debts from smallest to largest, and then create a plan to pay off the smallest one first.
  2. Small wins add up. Your personal finance strategy will be more successful if you feel motivated, which is why small wins are so important in the beginning. When you start paying off your smaller debts, you’ll find yourself feeling motivated to maintain your debt-reducing strategy.
  3. Pay off the next smallest debt. Once the smallest debt in your list is completely paid, add whatever you were paying on that debt to the payment for the next debt in the list, essentially doubling your monthly payment on that debt. Once you tackle this debt, you have another win under your belt.
  4. Eliminate all debt. Use the debt snowball to eliminate the rest of your debts from smallest to largest. As each debt is paid, add those payments to the next debt. Don’t worry about term lengths or rates unless two different debts have similar payoff amounts, at which point you should pay off the higher interest rate debt first.
  5. Keep building momentum. Let the momentum continue, repeating the debt repayment process for each debt as you work your way closer and closer to financial freedom. Every payment moves you closer to your goal of being financially free.
    • As you’re attacking the smaller debts first, maintain the minimum monthly payments for everything else. Do whatever is necessary to focus your attention on maintaining your plan and keeping this momentum going.
    • Keep stepping up from bill to bill, paying off the next smallest, then the next smallest, and so on. After your credit card debt is taken care of, you can focus on other debts as well – to where even your mortgage is paid off.

The snowball effect is an effective debt repayment strategy. Utilizing this method of debt repayment will help you keep the momentum as you repay your debts so that you can get the job done and enjoy a life free from the constraints of debt.

Until the next post,

Best,

Juan

Re$et Your Wealth

Financial Independence, Goals/Dreams, Gratitude, Support/Encouragement, , , , , , , , , , , ,

HAPPY NEW YEAR!

If you are reading this, you made it through the hand that 2020 dealt us. I am so happy we made it. Happy to be back to blogging after being on a break! Seems like forever. Here are some lessons I learned from last year; have more than one source of income, learn how to properly invest and plan for retirement, and the importance of stop trading my time for money. Towards the end of the year, I began taking concrete steps to become financially independent. I have started my FIRE (Financial Independence Retire Early) movement, as I have some catching up to do. 

Perhaps you are already years ahead in the FIRE movement. Keep at it. Maybe you are already retired. Enjoy these precious years, they go by quickly. However, if you are like me, and have no idea where to start, you are in the right place. It all starts with a belief, that you deserve every good thing that could possibly come your way. You must affirm it. Whether you realize it or not, every word you think or speak is an affirmation. Affirmations are declarations, observations if you will, about you and the world around you. The concept seems simple enough until you realize that what you affirm, positive or negative, is what you internalize and make a part of your reality. Suddenly that statement you made last week to friends about how you will never be able to get ahead isn’t so innocuous, right?!

You can change the way money shows up in your life though, simply by using daily positive affirmations. Eventually, these positive thoughts and words will replace the negative self-talk you’ve had for so long. And when that happens, you’ll begin to enjoy wealth in a way you never thought possible. Affirmations work because they replace the ideas and beliefs that you’ve held for years by replacing them with new statements, that define you in every aspect of your life. That is why it’s so important to use positive affirmations in your life, at every opportunity. That’s especially true for the behavior you want to change, or in how you wish to feel about yourself.

When developing a wealth mindset, affirmations become vitally important. Whatever you affirm, becomes your truth regarding money. Negative thoughts and negative talk about your money make for an impoverished you. What are some positive affirmations regarding a wealth mindset that you can use instead? Try saying these things:

  • I practice good habits that will lead me to success.
  • My intellect is sufficient to lead me to untold wealth.
  • I have what I need to live the life that I want.
  • I am a tribe-gatherer who brings together people and resources that will enable me to reach my goals.
  • My actions are positive and designed to increase my wealth daily.
  • I see opportunities where others do not.
  • I deserve the wealth I desire.
  • I am comfortable asking for help from mentors for what I need.
  • I already have everything I need to become wealthy.
  • I find connections and know-how to leverage my resources.

By repeating these phrases every morning when you get up and again in the evening when you go to bed, you create a habit of thinking positively about money. These affirmations become powerful in rewiring your feelings about wealth and money, and will then subconsciously begin to guide you in ways to make these words a reality. Affirmations have a way of making what you say come true. So be careful of your words. Guard your thoughts. Stay positive and make bold statements about yourself and what you’re out to accomplish. Only then will you seize wealth and leave poverty behind.

Where and how do you start taking control of your financial future? There is a plethora of information to go around. Choose FI (financial independence), offers one of the best courses I have seen on the topic, which I strongly recommend. It will change your life! I am not affiliated with the company in any way, but I am part of the worldwide FIRE movement. believe when we commit to helping others grow, it adds to our wealth. It goes without saying, please do not ever compare your journey with anyone else. The important thing is to start where you are!

Millions have taken the course and started on their own path to wealth. The course is completely free to anyone, regardless of where you live.I hope you found this post helpful, if so, feel free to share on social media or leave a comment below with suggestions. Start your journey to financial independence

To Your Success,

Juan

Promises, Promises

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At this time of year, you may be considering whether you’re going to make a New Year’s resolution. Maybe you’ve made them in the past and lost interest over time. Or perhaps you buckled down and followed through. Either way, you’re now facing the beginning of another new year. Even if you’re less-than-thrilled with your follow-through in prior years, the new year brings amazing opportunities to challenge yourself in all kinds of ways. Try these ideas to help you set up your resolutions so you’ll be successful during the coming year:

Select an area of your life that’s important to you. One of the keys to choosing your New Year’s resolutions is selecting a goal that truly matters. Ideally, you can find something you want more than anything. This will help keep you dedicated.
Be specific. The whole idea of making a New Year’s resolution can seem over-simplified. You’ll hear people say, “My New Year’s resolution is to get in to shape” or “I want to work less.”
What do statements like, “I want to spend more time with my family this coming year” really mean? Here’s how to be more specific: For the resolution to get into shape, why not state it in more detail? Consider committing to specifics, such as, “I want to lose 2 inches from my waist and 3 inches from my hips.” Another example of being more exacting might be “I want to increase visual muscle definition in my abdominals and my upper arms.”
Make your resolution measurable. How will you measure your results? For example, spending more time with your family may manifest as, “I plan to work 4 hours less per week in the coming year,” or “I won’t work on Saturdays, starting January 1st.”
Structure your resolution using mini-goals. Consider cutting your overall goal into smaller, separate goals. Select the first mini-goal to accomplish in the process and designate it as your New Year’s resolution for the first 3 months.
Consider this example: You want to lose 30 pounds. You’ve struggled to drop the weight in the past. But you want to get serious now. Here’s one way to cut this into mini-goals: Lose 10 pounds in the first 3 months of the year, lose another 10 pounds in the second quarter of the year and drop the final 10 pounds in the third quarter of the year. In the fourth quarter of the year, plan to focus on maintaining your weight loss.
Be realistic. It might not be possible for you to accomplish everything you want in just one year. But you probably can be well on your way to your goal by the end of the year if your New Year’s resolution is within reasonable standards.

When selecting your New Year’s resolutions, focus on what matters to you. Be specific and make your resolutions measurable. Use mini-goals and be realistic in establishing whatever resolutions you select. By addressing your resolution as a process rather than just a goal, you’re much more likely to succeed. And when you achieve one goal, you’re more apt to set resolutions and accomplish them in the years that follow. Start this year to make each year your best one ever!

According to research, losing weight, financial and time management, traveling, and self-care, are among the top resolutions each. In the coming weeks, watch for posts on each topic with helpful resources to help make this new decade meaningful! I’ve also written another book and will share the link with you!

Until the next post,

Best,

Juan

Solo Traveling Made Easy!

Goals/Dreams, Support/Encouragement, travel, , , , , , , , , , , , ,

 

Plitvice Lakes National Park (Croatia)

A few days ago, I returned from a 16 day/7 country Balkans adventure. My head has been spinning ever since, and honestly, I am still trying to catch up on much-needed sleep. On average I slept about 5.5 hours each night. But, who needs sleep for an undertaking of this nature? You sleep when it’s all over. What a thrill ride! It started in Slovenia, then onto Croatia, Bosnia, Serbia, Montenegro, Macedonia, and ended in Kosovo. Yes, I am knackered.

In the coming weeks, I will share with you my experiences. I need to finish gathering my thoughts, and catalog everything I saw, felt and experienced. I traveled through the Balkans with a group of strangers, who later became friends. I’ve also done solo travel. I thought it fitting to share some helpful advice, that has served me well over the years. It’s intimidating traveling alone. There is a fear of loneliness and boredom, staying safe, budgeting, and so many variables to consider. I hope you find today’s entry most helpful!

Traveling solo can be a great adventure. If you travel alone, you’ll get to know yourself better and follow your own schedule. If you’ve been holding back, these tips will make it easier for you to head out alone. You’ll learn how to deal with three of the most common concerns.

Coping with Loneliness and Boredom

You may wonder whether you’ll get lonely if you travel alone. The truth is that learning to enjoy your own company makes solitude rewarding. On the other hand, you can surely find companions if you feel like mingling.

Engage fully. Be mindful of your surroundings. Getting caught up in new experiences as you travel will leave little time for boredom.
Take a tour. A day tour is ideal for meeting new acquaintances. It’s easy to strike up a conversation when you share the same interests with others and you’re away from your usual routine.
Dine out. Look for places with communal tables or ask your hotel to recommend them. Eat at the bar if you feel conspicuous at a table.
Stay at a bed and breakfast. The owners of a bed and breakfast may be happy to talk about local attractions. Hostels are another good choice. There will likely be other guests and maybe even other solo travelers at these types of places.
Frequent local businesses. Visiting the same fruit stall every day will quickly turn you into a regular. Exchange greetings and let them know you appreciate any advice on what to see.
Talk to new people. Approach your fellow travelers or locals who seem friendly and helpful. Trains and coffee shops are two good places to start.
Do volunteer work. Sign up with a non-profit organization and perform group volunteer work. For example, travel to exciting places while building new homes through Habitat for Humanity.
Pursue solitary activities. Visit an art museum or lie on the beach with a good book. Enjoy the peace and relaxation you get from being alone.

 Protecting Your Safety

Security is an important concern for any traveler. Some basic precautions will reduce your risks.

Blend in. Looking like a tourist may leave you vulnerable. Walk with confidence and step inside a hotel to check your map.
Be alert. Observe what’s going on around you. Ask your hotel to advise you about where it’s safe to walk. If you’re near an unsafe area, avoid unnecessary risks by taking a cab to your destination.
Watch your money. You may want to wear a shoulder bag strapped across your body or under a coat. Consider using a money belt or clip. Solo travelers are often the perfect target for pickpockets.
Assess your fluency. Language skills also matter. Ask yourself if you can communicate clearly in case of a medical emergency.
Gather your documents. Put a copy of your identification and health insurance in your pocket. Leave a second copy with loved ones at home.
Check-in at home. Speaking of home, give your full itinerary to at least one person. Call or text them every few days to let them know you’re okay. There have been way too many instances of travelers disappearing on a trip and nobody realizes it for quite some time.
Pack light. Leave your valuables at home. Traveling with minimal baggage increases your comfort and your ability to move quickly.

Sticking to Your Budget

You may run into what’s called “single supplements” on cruises and tours. This is when the venue charges single travelers extra to try and make up for the lack of a second customer. Still, there are plenty of ways to vacation affordably on your own.

Save up in advance. Put money aside gradually. Small amounts add up over time.
Be flexible about timing. You’ll tend to find the best deals at the last minute or several months before your departure. Be open to traveling during the off-season for further monetary savings.
Look for special bargains. Check discount travel sites and look for deals. Some venues may even be willing to waive the single supplement.
Accept roommates. Contact travel companies who specialize in solo travel. Ask to be paired up with another single traveler who is headed to your same destination.

Spend a whole week at a pumpkin festival or browse the Louvre at your own pace. Avoid being intimidated by the thought of traveling alone. Solo travel creates memories you’ll treasure for life.

Until the next post,

Best,

Juan

Before You Go!

Goals/Dreams, Lists, travel, , , , , , , , , , , , , , , , ,

Views on The Inca Trail

Who LOVES to travel?

I do!

I get a massive buzz from it. For the past several years, my life has followed somewhat of a pattern. I work, save money, travel, return, rinse, and repeat! In the US, vacation days are like gold dust! There is something to be said, about the thrill of hopping on a plane, to a place you’ve never been, where no one knows your name, and the excitement of a different experience every day! I’ve told a loving universe, of my desire to travel for months at a time, volunteering from one country to the next, without the worry of having to return home, because I’m out of vacation days, or need to earn money!

Getting away can also be stress-inducing, especially as your departure gets closer. Years ago, I put off my trip preparation for weeks! The anxiety drove me nuts. I am so much better now at planning. In recent months, I’ve gotten inboxes, asking travel-related questions, from friends and co-workers alike. I am always happy to share my love of travel. I come alive giving tips, and hacks. Recently, I found myself reliving so many experiences, as I looked through multiple photo albums, containing years of memories. I am so grateful for the people, experiences, and opportunities presented to me.

In a month, I am off on a two-week adventure to Europe. I am so damn excited. This vacation is different, because it’s the longest one I’ve taken to date, coupled with the number of countries I plan to visit. Earlier this year, I set a goal to visit fifty countries, by the time I am fifty. I am approaching my mid-forties, and only just realized, by the time my birthday rolls around next year, forty countries will be off my list! So, I figured, why settle for fifty? Not me! So, it’s now sixty I am certainly going to try and smash this number!

The questions gave me an idea for this topic. Listed below, are things you should take into account before you go. Of course, the list is not exhaustive. If you find them helpful, have suggestions, or questions, I’d like to know! You can also email me, using the contact form above. In the future, I plan to blog about more travel-related topics; surviving the airport wait, long haul flights, trip planning, in-country support, etc. Follow my blog to get instant updates on new posts.

Ready. Set. Go.

What are the vaccination requirements for your destination?! If you are traveling to parts of South America, Africa, and Asia for instance, you need to be prepared. In some cases, you will not be allowed to leave the airport without proof of certain vaccinations. Consider the fact there might be a nationwide shortage of the one (s) you need. Always check at least 3 months in advance. There is a chance, you have not graced the door of your Doctor’s office in a while, for an annual checkup, no time like the present. Some health insurance plans, do not cover certain travel related vaccines. I needed Yellow Fever for Ghana, and was close to $200 out of pocket.

Seriously consider getting travel insurance! This aspect of trip planning is often hotly debated in groups. To me, it’s a no brainer. While I love the excitement and unknown in distant lands, there are some things I need to prepare for. Sickness, accidents, evacuation, repatriation, and yes, even death! I have seen, one too many Go Fund Me’s on social media, from families, begging for donations to bring their loved ones back home. Have you planned, and paid for a trip you can no longer take? You’ve lost out on thousands, in most instances. Consider annual plans if you’re a frequent traveler. Buy shortly after your initial trip payment, to save time and get better coverage.

If you are traveling with a friend or spouse, try selecting the middle and aisle seats respectively. Not many travelers want to sit in the middle. Unless the flight is full, you will end up with a seat between you two, giving you space to get a bit more comfortable. Go to sites such as Seat Guru, enter your flight details, and get advice. Sitting in the back of the plane, is also a good way to go if you are not fussy.

Make copies of your flight information, itineraries, and other travel documents, especially your passport. Take an extra step, and email a copy of the front page to yourself. There is nothing worse than being the victim of pickpocketing, lost/delayed luggage, etc., and not having access to this most important document. In the unfortunate event, you need to apply for a new one, it will speed things up. Always give a copy of your travel plans/itinerary, to at least one trusted person back home. Notify your State Department/Foreign Office of your travel plans (can be done online in most instances). Write down the address and phone number of your country’s embassy.

I don’t know about you, but I easily get lost in my handbags; so it’s crucial to be able to navigate new surroundings. Duh, get a map! Of course, some have a preference for paper versions. Furthermore, you might not have access to Wi-Fi/data to access one electronically. I love offline maps, such as maps.me, which gives turn by turn directions, of practically anywhere in the world! The app is FREE, detailed, and very functional. Another good option is Tripso; which doubles as a guide and map. Roam at your own pace, and discover thousands of locations, packed with experiences to suit a variety of tastes. There are many paid apps available.

Take a mini first aid kit, or at least, the essentials. Use items already in your medicine cabinet. When I hiked the Inca Trail earlier this year, altitude sickness was a beast! Headaches every day, lack of sleep, tiredness, and sore muscles, only contributed to the discomfort. I didn’t need to purchase extras. Walking around all day can result in calluses, blisters, and tired, aching feet.

Roll clothing, or fold them the Marie Kondo way. I have not used her methods. However, I can attest to using packing cubes and rolling clothes. Cubes are space-saving, allows for easy identification of items, and avoids clutter. Total game-changers. I have not reverted to my old habits! I always pack two extra outfits in my carry on. If your checked baggage doesn’t arrive the same time you do, you’ll have clean clothing to tide you over.

Regardless of what’s in your suitcase, mark FRAGILE on the outside! This tip came directly from an airline employee. I’m willing to bet, all of us have seen videos of the total disregard shown by baggage handlers. Marking your items as fragile reduces the risk, of them being tossed around, and protect them from damage.

Invest in a decent international adapter, and a portable charger. When I volunteered in Dodowa, Ghana, electricity was unstable. To my dismay, I couldn’t charge my phone using the outlets. To make matters worse I had left my charger at home, relying solely on the mercy of others. Ugh. An extra battery would have come in handy. I was a lot more prepared for the Inca Trail, as we couldn’t charge our devices for almost four days.

Today, with so much technology readily available, it’s easier for us to remain in touch with family and friends while traveling. Facebook Messenger and WhatsApp are great for this purpose. Add your friends and family, on the latter, before you leave. Notify your cellphone carrier of your travel plans. Turn OFF data roaming BEFORE you land. Unlock your phone before you leave, this allows you to purchase a cheap local sim plan if you chose to. Most major US carriers, have long-distance plans either already included or available to purchase, with slow speed data.

Look up monetary conversions ahead of time, though exchange rates change daily. Buy local currency before you go. With proper notice, most banks will order these for you, charge the regular exchange rate, minus fees. Avoid airport exchange counters. If you need more, use a bank or ATM at your destination. Some travelers prefer to load money on a cash card. Find what works for you!

Finally, let your bank/credit card companies know you are traveling! Nothing worse than having a transaction declined abroad, for being flagged as fraudulent. Same thing for credit cards. A simple phone call will do, or in many cases, use the mobile banking app. One extra thing to note, if you live in the West, look into travel hacking. Please be responsible with credit! With that being said, you are already paying monthly cellphone, cable, rent, and other bills, but are they translating into rewards for flights, hotels, activities, etc? Stop leaving money on the table. Travel hacking has revolutionalised the game for me.

I hope you found these tips helpful. Traveling has changed my life, which only began, outside my comfort zone.

Where will you travel to next? Perhaps a fun quiz can help!

Wherever your next flight takes you, remember, “If you think adventure is dangerous, try routine, it’s lethal.”

Until the next post,

Best,

Juan